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Company Formation in Gibraltar

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Standing as the gateway to the Mediterranean Sea, Gibraltar has long been a popular destination for business owners. Sharing many similarities with UK law, the process of company formation in Gibraltar is kept relatively straightforward, but comes with a few more benefits.

Anyone who completes their company formation in Gibraltar stands to avoid wealth tax, sales tax, VAT, and capital gains tax. Alongside its fellow island nations Malta and Cyprus, Gibraltar is yet another very attractive choice for a company wanting to setup on the Mediterranean. Here’s what you need to know about completing your company setup in Gibraltar.

Benefits of Having a Company Setup in Gibraltar

The main reason to go through the process of business registration abroad rather than setting up a company on your home soil is to reap the benefits of a more business-friendly environment. Having a company setup in Gibraltar offers many benefits, with these being the main perks of having a company on The Rock:

  • Advanced Infrastructure
  • Cost-Efficient Operations
  • Efficient Registration
  • English-based Legal Framework
  • Skilled Workforce
  • Support for Businesses
  • Tax Advantages

The headline attraction of having a company setup in Gibraltar is the taxation – or rather, the lack thereof. While subject to many conditions, it is possible to achieve tax-exempt status as a company setup in Gibraltar for income earned beyond its borders. Should you be unable to attain this outright tax-exempt status, the corporate tax is fairly low. Contact us for more information and proper structuring.

At 15 percent – following an increase on July 1, 2024 – a company setup in Gibraltar would find itself with more flexibility than in some other top destinations for overseas company formation. Plus, Gibraltar doesn’t require you to pay capital gains tax, capital transfer tax, inheritance tax, VAT, wealth tax, or tax on your investment income or savings.

On the island itself, you’ll also find a supportive business climate that seeks to promote new ventures as well as a skilled workforce known for its strong work ethic and high level of education. Within this business ecosystem, you won’t struggle to find top-tier support services to help your business.

Finally, when you’re on the path to getting a company setup in Gibraltar, you’ll find the registration process to be quick, streamlined, and, above all else, efficient. This is powered by its legal system being based on English common law, which also gives you a structure that you can rely on.

Types of Company Registration in Gibraltar

When you undergo company registration in Gibraltar, you’ll have many types to choose from, as outlined in the Companies Act 2014. These are the company types to take into consideration:

  • Companies Limited by Guarantee: Here, company members act as guarantors rather than shareholders. Should the company go into liquidation, its members’ financial obligations are limited to how much they committed to the entity’s assets. This kind of company registration in Gibraltar can be private or public and with or without share capital.
  • Private Companies Limited by Shares: The most frequently used form of company registration in Gibraltar, a private company is either limited by shares or guarantees. Each has restrictions on share transfer and must adhere to a prohibition on public share or debenture subscriptions. When limited by shares, a private company only needs one subscriber to be constituted properly.
  • Protected Cell Companies: Under the Protected Cell Companies Act 2001, PCCs are made up of a core company that can have potentially unlimited subdivisions (cells). Legally speaking, the liabilities and assets of each cell are segregated, so the risks of one cell won’t affect the activities of another. The investment fund and captive insurance industries make use of this company type often, and applications will often extend to elements like securitization transactions and special purpose vehicles.
  • Public Companies: Limited by shares or guarantees with a share capital, public companies must comply with relevant provisions detailed in the Companies Act 2014. To complete the public company registration in Gibraltar, you’ll need to end the company name with “plc” or “Public Limited Company,” obtain a Registrar of Companies certificate, issue a prospectus, and have a minimum of £20,500 (€24,300, $26,800) in allotted share capital.
  • Unlimited Companies: Opting for an unlimited company registration in Gibraltar means that every shareholder is held responsible for all company obligations should it go into liquidation. An unlimited company can have a share capital if it chooses, but at its core, shareholder liability is similar to that of a partner in a general partnership. Someone might opt to go down the lines of unlimited company registration in Gibraltar if incorporation is preferred, limited liability isn’t an option, and in sectors where insolvency risk is low.

Requirements for Company Formation in Gibraltar

While each type of setup will have its own little variations, for the most part, this is what you should expect to be asked for when undergoing a company formation in Gibraltar:

  • Company Name: Cannot be similar to another company in Gibraltar.
  • Registered Office: A company formation in Gibraltar may need a physical address there, and it’s likely necessary to be granted a business license.
  • Declare Directors: You need at least one person to be named as a director at the point of company formation in Gibraltar, but you don’t need any director to be a resident of The Rock.
  • Declare Shareholders: There aren’t residency requirements, and shareholders can be individuals or corporate bodies, but at least one needs to be named.
  • Company Secretary: You need to appoint either an individual or corporate body to the company secretary position.
  • Share Capital: The standard authorized capital is usually set at £2,000, but there isn’t a minimum requirement for private companies.
  • Memorandum and Articles of Association: These documents need to be sent in during the incorporation process, outlining the structure and regulations of the company.
  • Paying Registration Fees: One of the requirements for company formation in Gibraltar is to pay a registration fee to Gibraltar Companies House.
  • Business License: Gibraltar’s Fair Trading Act 2015 dictates that, if your company is to provide services, trade, or import goods in commercial quantities to Gibraltar, you must be granted a business license in most cases.
  • Statutory Filing: After you’ve completed your company formation in Gibraltar, you’ll be expected to keep a regular filing of financial statements and annual returns.
  • Tax Registration: Once the Gibraltar company is formed, you’ll need to register for tax, and so, you may be in need of tax and legal consulting to make sure that all of the boxes are ticked.

How We Can Help You Complete the Company Setup Gibraltar Requires

Our team at InteliumLaw is uniquely well-positioned to help you tick all of the boxes of company setup Gibraltar requires for any company type. Our firm specializes in applicable law and has a network of local specialists, which makes us efficient in handling your company registration and allows us to give you cutting insights as we move along the processes.

We offer an extensive list of services for our Gibraltar company formation customers. We can assist in the process of company incorporation, offer legal consultancy and advise on corporate structure, provide consultations and plans for tax structures, open a corporate bank account, ensure company compliance with Gibraltar’s regulations, and help you get your licenses and permits.

The many kinds of company setup Gibraltar offers, coupled with the tax breaks and streamlined registration process, makes Gibraltar a popular destination for company formation. When you’re ready, we’re here to help you setup your company in Gibraltar.

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FAQ

How much does it cost to incorporate a company in Gibraltar?

Gibraltar company formation cost varies and depends on several factors such as the nature of the business, the complexity of the company structure, legal and professional fees, and any specific licensing requirements. Contact us to receive tailored pricing for your case.

How does the company legislation work in Gibraltar?

In Gibraltar, company legislation is primarily governed by the Gibraltar Companies Act, which is modeled on the UK Companies Act. Gibraltar's legal system, being based on English common law, offers a familiar and stable business environment, particularly for companies with international dealings.

What are the key advantages of choosing Gibraltar for company formation?

Choosing Gibraltar for company formation offers key advantages like favorable tax regime, strategic location at the gateway to the Mediterranean, and a legal system based on English common law.

What are the annual requirements and obligations for Gibraltar companies?

Gibraltar companies must fulfill annual requirements like filing financial statements and annual returns, maintaining proper accounting records, and ensuring compliance with local corporate and tax laws.

Are there additional services available beyond company registration?

In addition to facilitating company formation, our services extend to providing legal counsel on corporate and tax structuring, assisting with compliance and regulatory matters, helping open bank or other financial accounts for your Gibraltar company, and aiding in the acquisition of a gaming license

What makes Gibraltar a favorable location for businesses in terms of taxation?

Gibraltar's favorable taxation for businesses includes a low corporate tax rate, no VAT, capital gains, or inheritance taxes, and a territorial tax system where only locally sourced income is taxed.

How long does it take to register a company in Gibraltar with InteliumLaw?

The time frame for registering a company in Gibraltar with InteliumLaw can vary, as it largely depends on the nature of the business, the complexity of the company's structure, and the efficiency of document preparation and submission on the client’s side. Other factors that can influence the duration include the specific requirements for regulatory compliance and any additional approvals needed for specialized business activities. Therefore, while some registration’sstages might be completed relatively quickly, others may take longer due to these varying factors.

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The accumulated experience and tracking of future changes in this area allow us to be proactive
for our clients and develop the most adapted business structures to modern conditions.

By submitting this form, you hereby authorize Inteliumlaw to process your information for the purpose of addressing your inquiry. You retain the right to revoke this consent at any point. For further details, please review our Privacy Policy.